SCH Distribution has finalised the acquisition of Interface Solutions and Systems Loans Services (SLS) this morning after the board of parent company Fayrewood gave the £2m deal the thumbs up.
The offer, which includes £976,000 cash upfront and two additional payments of £500,000 within twelve months, was the culmination of lengthy negotiations between the two companies first revealed by this magazine on 23 June.
James Rigby, UK managing director at SCH (Distribution) told Microscope "Interface is an ideal distribution vehicle for us to extend our range of specialist products and services."
The deal further expands the Rigby family's distribution empire which already includes ETC, Interchange and Bestware - operating in the UK, France and Netherlands - with sales in the region of £1.18bn a year.
In the year to 31 December 2007, Interface, which employs 130 staff turned over £130m and made a loss of £571,000. SCH has forecast its new subsidiary to achieve revenues upwards of £140m this calendar year.
Interface will run alongside ETC and Interchange in the UK and will increase the group's purchasing power with vendors which include IBM, Lenovo and Sun.
"Long term, strategic relationships with IBM, Lenovo and Sun are expanded, as are our best of breed vendor partnerships overall including Acer, ASUS, VMware and Citrix," Rigby continued.
"We can now offer our reseller customers an even better and more cost effective range of products and services combined with greater choice," he added.
This deal concludes Fayrewood's strategy of exiting IT distribution across Europe having already sold Computerlinks AG, UMD SA and Banque Magnetique in recent years..
Keith Negal, managing director at Interface, said "SCH Distribution is a great home for Interface Solutions and a solid platform from which to grow".
SLS, which employs three staff, manages the loans of IBM X-series servers to customers on behalf of Big Blue.